Moody's prunes Agung Podomoro Land

Moody's Ratings said it downgraded the corporate family rating of PT Agung Podomoro Land Tbk. to Caa3 from Caa2.

At the same time, the agency cut the backed senior unsecured rating of the 2024 notes issued by APL Realty Holdings Pte. Ltd. to Ca from Caa3. APL Realty Holdings is a wholly-owned subsidiary of Agung Podomoro Land. Agung Podomoro Land and some of its subsidiaries guarantee the notes.

"The rating downgrades to Caa3/Ca reflect Agung Podomoro Land's imminent refinancing needs given the upcoming U.S. dollar bond maturity in June 2024. The rating action also incorporates the company's continued weak liquidity and unsustainable capital structure," said Rachel Chua, a Moody's vice president and senior analyst, in a statement.

"Agung Podomoro Land's bond rating is notched down to Ca to reflect legal subordination risk for the noteholders. Secured borrowings account for the large majority of the company's capital structure," Chua added.

The outlook remains negative.

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